Kanakia Group to invest Rs 500 crore in residential, hotel properties

MUMBAI: Diversified conglomerate Kanakia Group plans to invest more than Rs 500 crore over the next two years for developing residential and hotel properties, a top company official said.

"Our focus in the coming years will be on developing hotel and residential properties. We plan to invest more than Rs 500 crore over the next two years, which will be utilised for buying land parcel and construction," company's Chairman Rasesh Kanakia said.

With a portfolio of over 13 million sqft across categories including residential, commercial and hospitality, the company currently has 13 lakh sqft of area under development in the residential space and 15 lakh sqft in the commercial segment.

The Mumbai-based company has two hotels in its portfolio with one each in Ahmedabad (Novotel) and Mumbai ( Courtyard Marriott).

"We want to become one of the leading residential projects developer. We will be focusing on developing projects in the Mumbai metropolitan region mainly because the Mumbai market is saturated," he said.

The company has land parcels in Panvel and Virar and plans to expand its presence in the regions.

"We have around 200 acres of land parcel in the region and are looking at buying another 200 acres here for expansion. In Mumbai, we are looking at redevelopment projects," he said.

In the hospitality business, the company is currently developing a 150-room hotel -- Hyatt Place -- in Goa with an investment of over Rs 150 crore.

"We also plan to develop few more hotel properties in Goa, Delhi, Mumbai and Bangalore," Kanakia said, adding, "the Goa property will be funded through debt and promoters' equity."

When asked whether the company was looking at selling its stake in the Ahmedabad hotel Novotel, he said, "We would consider exiting the project if we get the right valuation."

While private equity firm Sun Apollo owns the land, it is managed by Accor Group, the international hotel chain.

Latest Realty News

MUMBAI: The Piramals-backed private equity fund, focused on realty sector, today said it has finished raising a Rs 1,000-crore fund and has already committed Rs 250 crore from the corpus in three projects.

MUMBAI: The overall office space absorption in the top seven cities of the country grew by approximately 35 per cent in fourth quarter of this fiscal at nearly 8.2 million sq ft against six million sq ft in the previous quarter, according to real estate consultancy CBRE’s latest report.

PUNE: It has indeed been an interesting year for Pune’s property market in 2013. At a time when the markets across the country were by and large subdued, Pune had been growing at a steady pace and even appeared on the luxury landscape during the year. There have been multiple demand drivers behind Pune’s growth during the year and it is generally believed that once the economic outlook in general is brighter, Pune may be witness to better appreciation than even the neighbouring Mumbai property m

NASHIK: 'Chavadi vachan' - the process of reading out records publicly at the village level - carried out by the district administration has revealed that 7,619 government properties were encroached upon by individuals and groups, against which, the administration has initiated action. The chavdi vachan programme has, in fact, helped the administration more than the people in general.

MUMBAI: Is real estate a good investment? Or is real estate good for you? The former focuses on returns from real estate, while the latter focuses on what real estate ownership can do to your emotional state of being. After observing the almost-compulsive urge among individuals to own a house, we realized that real estate ownership can do more good to your mental well-being than it can do to your portfolio.

PUNE: Over 16,000 properties, which have not been assessed for payment of property tax for a period ranging from six months to six years, were identified in the city limits during a month-long drive of the civic body.

NAGPUR: Citizens are likely to face a hike in property tax and water tariff in the new financial year. The Maharashtra Municipal Corporation (MMC) Act makes it mandatory for civic bodies to plan and complete the process to revise taxes before February 20. Therefore, the civic body has started planning revision in both taxes considering the huge revenue deficit due to lack of improvements in tax collection and recovery system.